DOGE traders are once again thinking about their unfair predicament as another week comes to an end. While many of the top cryptocurrencies saw healthy price swings this week, DOGE continues to act as a stablecoin.
In terms of price action, DOGE is trading at $0.7 at press time. It has been hovering around this price for over 6 weeks.
DOGE is nothing more than a “memecoin” status from an objective point of view. While stubborn fans argue it can be used for trading purposes, very few retailers accept it. Previously, this token was mainly used for speculation. This explains why it has barely caught the attention of investors, now that the market is moving in the favor of utility.
The Great Migration
The trend of investor interest changed during the period from July 18 to 22 when approximately 19.46 billion DOGE was transferred between exchanges. This is the largest spike in the ‘hibernate’ circulating index over the past 6 months.
The spike occurred at the same time that DOGE was on the rise, marking the end of the rally. At the same time, the outflow during this period prevented any further upside momentum. DOGE’s on-chain volume has dropped significantly over the past 6 months. Additionally, volume dropped to a 6-month low earlier this week.
Despite the shortcomings, DOGE is the 11th largest cryptocurrency by market capitalization. At the time of writing, the token has a market cap of $9.6 billion, meaning many investors still believe in it. In fact, Tesla CEO Elon Musk recently confirmed his support for DOGE.
DOGE’s sentiment-weighted sentiment ended Thursday’s session at a two-week high (0.62). Social dominance also rose to a 2-week high, reflecting that DOGE is still garnering considerable attention.
Expect surprises with DOGE
DOGE’s underperformance could put it at a disadvantage in the short term. However, this does not necessarily mean that it remains criticized in limbo. Investors should note that DOGE still has a large community and the backing of one of the wealthiest people in the world.
It should come as no surprise that the DOGE price surged despite little hope.